CORRECTED-Hong Kong shares close down 0.1 pct, ICBC drags after Goldman sale

Tue Jan 29, 2013 3:22am EST

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(Corrects GOME price change in 2nd bullet to rise 1.1 pct, not fall)

HONG KONG Jan 29 (Reuters) - Hong Kong shares slipped from Monday's 20-month closing high, underperforming Asian peers largely due to a weak Chinese banking sector after Goldman Sachs sold a $1 billion stake in Industrial and Commercial Bank of China (ICBC).

The Hang Seng Index closed down 0.1 percent at 23,655.2 on Tuesday, slipping from its highest closing levels since May 31, 2011. The China Enterprises Index of the top Chinese listings in Hong Kong inched down 0.2 percent.

The CSI300 of the top Shanghai and Shenzhen A-shares listings ended up 0.9 percent at 2,675.9, its highest close since May 8. The Shanghai Composite Index climbed 0.5 percent to its highest close since June 1.

HIGHLIGHTS:

* After the market closed on Monday, Goldman Sachs offered shares of ICBC at HK$5.77, a 3 percent discount to the day's near 2-year close at HK$5.95. On Tuesday, the shares slid 2.2 percent to HK$5.82 which pointed to a healthy demand for the stake sale, given that the stock dropped less than 3 percent.

* Shares of Bain Capital-backed GOME Electrical Appliance rose 1.1 percent despite China's second-largest home appliance retailer having said late on Monday that it expects to have suffered a loss last year partly due to its unprofitable e-commerce business.

* Mid-sized Chinese banks were again strong after mainland media reported that the country's banking regulators may relax loan-to-deposit ratio limits to improve risk controls as interest rates are gradually liberalised, a move that will benefit smaller banks more in the short term. (Reporting by Clement Tan; Editing by Sanjeev Miglani)

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